This article examines companies’ and public sector organisations’ external restructuring processes, with consideration of emerging or lengthening value chains and network relationships in the service sector. Focusing on two business functions — software development in the IT industry and IT services for public sector organisations — the article describes the types of inter-organisational relations that emerge and analyses the impact of restructuring on employment conditions and work organisation. The business functions clearly differ according to the form that restructuring takes and with regard to the impact of restructuring on work and employment. Common trends include increased insecurity, growing flexibility demands and higher levels of standardisation and formalisation of work.
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